The trade association which represents the video games industry and serves a network for video game developers, TIGA, has recently reported new information showing that growth registered in the Scottish video games development industry came to a standstill in the year which ended on November 2018.
Currently, Scotland is the fourth biggest games cluster on the territory of the UK, ranked after London, the South East and the North West region, marking a decline from third place in November 2017. In comparison, the UK games industry marked an 8.1% growth rate over the same 12-month period to November 2018.
As recently revealed by TIGA, there are 1,537 permanent and full-time equivalent creative staff members who are developing games in 84 companies in Scotland. This is a slight decline from 1,540 staff members in 91 companies a year ago after a number of Scottish studios stopped operation. An overall of 7.9% of the game companies in the UK and 10.7% of the developer staff were based in Scotland in the year ending November 2018. This was also a decline in comparison the previous year when the figures were 8.9% and 11.6%, respectively.
The investment made by game developers in Scotland is estimated at £88 million in salaries and overheads on an annual basis. Reportedly, they make a contribution of £80 million in both direct and indirect tax revenues to the HM Treasury, while their contribution to the UK’s Gross Domestic Product amounts to £194 million.
Scottish Gaming Industry Marks Growth Decline amid Rising Problem Gambling Rates
The video games industry’s growth in Scotland has come to a standstill in 2018 following a significant growth registered in the previous 12-month period. According to the data provided by TIGA, the decline registered in the Scottish game development industry is believed to be due to the closure of a number of studios.
The reduction is registered at a time when Scotland is being pointed out as one of the regions in the UK with the largest number of problem gamblers. For some time, the local anti-gambling campaigners have been trying to raise people’s awareness of the possible negative consequences associated with gambling. Campaigners have also urged local authorities to make sure that contributions which British gambling operators make for problem gambling charities are larger so that more people are well protected against gambling-related harm.
As mentioned above, in the twelve-month period to November 2018, Scotland remained the fourth largest games cluster on the territory of the country, featuring a variety of game studios specialising in online, mobile, educational and console gaming markets. As disappointing as it may be for Scottish game developers to see a decline in the industry’s growth, this trend could be found positive by opponents of gambling in the region.